Sec. 7-479b. Membership in interlocal risk management agency; bylaws; administration of different risk management pools. (a) Any two or more municipalities
may form and become members of an interlocal risk management agency. A municipality may take such action by resolution of its legislative body or, where the legislative
body is the town meeting or representative town meeting, by resolution of its board of
selectmen or town council. A local public agency other than a municipality may join
an interlocal risk management agency by resolution of its governing body. Through
membership in an interlocal risk management agency, a local public agency may (1)
pool its risks, other than workers' compensation risks, in whole or in part with those of
other local public agencies, (2) pool its workers' compensation risks in whole or in part
with those of other local public agencies, (3) pool its risks of loss in excess of loss
retentions as the agency may determine in whole or in part with those of other local
public agencies, (4) jointly purchase public liability insurance, workers' compensation
insurance, property perils insurance, automobile insurance and reinsurance for any risk,
(5) take other actions necessary to the foregoing.
(b) The bylaws of an interlocal risk management agency shall provide that any
municipality in this state may join the interlocal risk management agency provided
it agrees to comply with the standards for membership, including risk management
standards, established by the agency and may be a member as long as it complies with
the standards for membership.
(c) All interlocal risk management pools shall be separate, but may be administered
by a single interlocal risk management agency. Upon the vote of the board of directors
of an interlocal risk management agency, a pool administered by it may lend funds to
another pool administered by it.
(P.A. 79-561, S. 2, 9; P.A. 86-134, S. 2, 6.)
History: P.A. 86-134 allowed a local public agency to pool its risks of loss in excess of loss retentions, and to purchase
property perils insurance, automobile insurance and reinsurance, and permitted one pool to lend funds to another pool
administered by the same agency.
Sec. 7-479c. Board of directors. Any other provision of the general statutes to the
contrary notwithstanding, an interlocal risk management agency shall be governed by
a board of directors periodically elected by its members by weighted vote or otherwise
as provided by its bylaws.
(P.A. 79-561, S. 3, 9.)
Sec. 7-479d. Appointment of agent for service of process. An interlocal risk
management agency may sue or be sued and shall appoint a natural person residing in
this state or a corporation authorized to do business in this state as its agent for service
of process and notify the insurance commissioner of such appointment.
(P.A. 79-561, S. 4, 9.)
Sec. 7-479e. Agency not an insurer. Reserve for contingencies. Applicable insurance laws. (a) An interlocal risk management agency is not an insurance company
or insurer under the laws of this state and the development and administration by such
agency of an interlocal risk management pool and an interlocal risk management program does not constitute doing an insurance business.
(b) The formation, development and administration of a workers' compensation
risk management pool by an interlocal risk management agency may be carried out as
provided in this chapter and in such instance sections 31-328 to 31-339, inclusive, shall
not be applicable, provided that nothing in this chapter shall prevent a local public agency
from proceeding under sections 31-328 to 31-339, inclusive. Notwithstanding any provision of the general statutes, an interlocal workers' compensation risk management pool
may provide interlocal risk management of claims for injuries or diseases caused by
hypertension or heart disease resulting in death or temporary or permanent, total or
partial disability, to a uniformed member of a paid fire department or a regular member
of a paid police department as provided for in section 7-433c. Such risk management
may be provided within an interlocal workers' compensation risk management pool or
within a separate pool exclusively for hypertension and heart disease. Only one reserve
for contingencies need be established whether or not risk management of hypertension
and heart disease is provided by a separate pool.
(c) An interlocal risk management pool, other than a public liability, automobile and
property risk management pool, shall at all times maintain a reserve for contingencies at
a minimum of one hundred thousand dollars for each fiscal year such pool is in operation,
except that each such pool need have no more than five hundred thousand dollars in the
aggregate. An interlocal public liability, automobile and property risk management pool
shall maintain, during its first year of operation, a reserve for contingencies at a minimum
of five hundred thousand dollars and shall thereafter increase such reserve by an amount
equal to five per cent of the total contribution of members with respect to each ensuing
year until the ratio of contribution of members for the then current year to the amount
of the reserve for contingencies is no greater than three to one. Until such time all
agreements between an interlocal risk management agency and public liability, automobile and property pool members shall contain a provision permitting assessment of members in an amount not to exceed thirty per cent of a member's contribution for the year
with respect to which the assessment is made. Notwithstanding any general statute,
special act, or local law, ordinance or charter, retrospective agreements between any
interlocal risk management pool and its members or assessments of such members shall
be binding and enforceable. A reserve for contingencies means unassigned funds held
over and above the liability reserves of the pool. The reserve for contingencies shall be
advanced to the pool and placed at risk by the members of the interlocal risk management
agency participating in the pool. Advances to the reserve for contingencies shall be
evidenced by certificates, which may bear interest at a rate determined by the agency's
board of directors. Advances may be repaid only when such repayment will not reduce
the reserve for contingencies below the required minimum.
(d) Each such interlocal risk management pool and interlocal risk management
agency shall, except as specifically designated in this section, be exempt from the provisions of the general statutes relating to insurance. The sections of the general statutes
applicable to an interlocal risk management pool and interlocal risk management agency
shall be: Sections 38a-11, 38a-14, 38a-17 to 38a-19, inclusive, 38a-49, 38a-51 to 38a-53, inclusive, 38a-56, 38a-76, 38a-321, 38a-334 to 38a-336a, inclusive, 38a-338, 38a-340 to 38a-343, inclusive, 38a-350, 38a-363 to 38a-387, inclusive, 38a-663 to 38a-666,
inclusive, 38a-669, 38a-671, 38a-675 to 38a-682, inclusive, 38a-790, 38a-792, 38a-806,
38a-815 to 38a-819, inclusive, and 38a-828.
(P.A. 79-561, S. 5, 9; P.A. 80-258, S. 2; P.A. 81-394, S. 10; P.A. 82-41; 82-353, S. 19, 26; 82-384; P.A. 86-134, S. 3,
6; P.A. 93-297, S. 18, 29; P.A. 01-174, S. 6.)
History: P.A. 80-258 amended Subsec. (b) to add provisions concerning claims arising from hypertension or heart
disease; P.A. 81-394 made no substantive change; P.A. 82-41 amended Subsec. (c) to clarify that one hundred thousand
dollar minimum for contingency reserve is for each fiscal year of operation, imposing a maximum of five hundred thousand
dollars; P.A. 82-353 eliminated reference to repealed sections, effective July 1, 1983; P.A. 82-384 added the reference to
Sec. 38-349 as a section applicable to an interlocal risk management pool or agency, inadvertently deleted in P.A. 82-353;
P.A. 86-134 amended Subsec. (c) to establish separate contingency reserve requirements for interlocal public liability,
automobile and property risk management pools, and to permit the assessment of members of such pools for a limited
period; P.A. 93-297 amended Subsec. (d) to add reference to Sec. 38a-336a, effective January 1, 1994; P.A. 01-174 amended
Subsec. (d) to substitute "in this section" for "herein".
Sec. 7-479f. Pool not to function until contributions received by agency. An
interlocal risk management pool shall not function as a means of sharing among members
of an interlocal risk management agency risks of loss for or from public liability, workers' compensation, automobile risks, property perils or losses in excess of retentions until
the interlocal risk management agency administering such a pool shall have received
contributions from members in the amount of one million dollars with respect to a
workers' compensation or an excess risk pool, and two million dollars with respect to
a public liability, automobile and property pool, provided in cases where a member has
agreed to pay its annual contribution monthly, quarterly or in other installments, the full
amount of its annual contribution shall be included in calculating the applicable dollar
requirement of this subsection if such first installment has been paid by the time the
pool is to commence its risk-sharing function. An interlocal risk management agency
which operates an interlocal workers' compensation risk management pool and a separate hypertension and heart disease pool may function as a means of sharing both such
categories of risks after receiving contributions from members in the amount of one
million dollars in the aggregate with respect to both such pools.
(P.A. 79-561, S. 6, 9; P.A. 80-258, S. 3; P.A. 86-134, S. 4, 6.)
History: P.A. 80-258 required one million dollars in the aggregate with respect to both compensation risk management
and separate hypertension/heart disease pools before agency operating both allowed to function; P.A. 86-134 established
separate contribution requirements of two million dollars for public liability, automobile and property pools.
Sec. 7-479g. Local public agency's liability to risk management agency. Determining of contributions. Pool not to function prior to bylaw approval. (a) A local
public agency shall not by reason of being a member of an interlocal risk management
agency and contributing to an interlocal risk management pool be liable to such interlocal
risk management agency, to any other member or to any claimant against the agency,
itself or another member, except for payment of contributions under an agreement between the local public agency and the interlocal risk management agency.
(b) The agreement concerning the method of determining contributions of members
to an interlocal risk management agency or interlocal risk management pool shall be
contained in the bylaws of the agency and shall also be referred to in a document evidencing an individual member's participation in a risk management pool at a particular time.
The agreement referred to shall set forth the obligations, if any, of a member in the event
that the agency is unable to pay indemnification obligations and expenses payable from
risk management pools administered by it.
(c) An interlocal risk management pool shall not function as a means of sharing
among members of an interlocal risk management agency risks of loss for or from public
liability, worker's compensation, automobile risks, property perils or losses in excess of
retentions until the agency's bylaws have been filed with and approved by the Insurance
Commissioner.
(P.A. 79-561, S. 7, 9; P.A. 80-482, S. 3, 345, 348; P.A. 86-134, S. 5, 6.)
History: P.A. 80-482 substituted "insurance commissioner" for "commissioner of insurance within the department of
business regulation", reflecting dissolution of said department and conforming commissioner's title to usage throughout
the statutes; P.A. 86-134 amended Subsec. (c) to include automobile risks, property perils and losses in excess of retentions.
Sec. 7-479h. Management, meetings, minutes and records pertaining to claims
not subject to freedom of information laws. The meetings, minutes and records of an
interlocal risk management agency pertaining to claims shall not be subject to sections
1-201, 1-202, 1-205, 1-206, 1-210, 1-211, 1-213 to 1-217, inclusive, 1-225 to 1-232,
inclusive, 1-240, 1-241 and 19a-342.
(P.A. 79-561, S. 8, 9.)
History: (Revisor's note: In 1997 reference to "1-19 to 1-21k, inclusive" was changed editorially by the Revisors to
the corresponding section numbers in Ch. 3 and also Sec. 19a-342, reflecting the transfer of those sections).
Sec. 7-479i. Issuance of bonded indebtedness. An interlocal risk management
agency shall have the power to issue bonds, notes or other obligations from time to time,
in its discretion, for any of its purposes. Such bonds, notes or other obligations shall be
payable solely from and secured by a lien upon any or all of the income or property of
the interlocal risk management agency. Bonds, notes or other obligations issued under
this section shall be in such form, mature at such time or times, bear interest at such rate
or rates, be issued and sold in such manner, and contain such other terms, covenants
and conditions as the interlocal risk management agency by resolution determines. Neither the directors of the interlocal risk management agency nor any person executing
the bonds, notes or other obligations shall be liable personally on the bonds, notes or
other obligations by reason of the issuance thereof. The bonds, notes or other obligations
of the interlocal risk management agency shall not be obligations of any local public
agency or of the state and such bonds, notes or other obligations shall so state on their
face. Neither a local public agency nor the state shall be liable on such bonds, notes or
other obligations and such bonds, notes or other obligations shall not be payable out of
any funds or properties other than those funds of the interlocal risk management agency
pledged as security for such bonds, notes or other obligations.
(P.A. 86-350, S. 26, 28.)